(theedgemarkets.com / April 23, 2021 12:48 pm +08)
KUALA LUMPUR (April 23): S P Setia Bhd kick-started the year with positive take-up rates for its residential products in the first quarter of 2021 (1Q21), despite the weak property market sentiment during the pandemic.
Acorus at Setia EcoHill 2 in Semenyih was launched via a special online preview, which saw its two-storey 20ft by 65ft terraced houses fully sold before Chinese New Year. As a result, Acorus 2 was launched in March and achieved a take-up rate of 70% during the first day of its launch.
Moreover, the latest phase of Setia Alam's Bywater Homes collection called Plenum, comprising two-storey 22ft by 70ft terraced homes, was also launched online in mid-March and the units were fully booked within an hour.
“We are elated by the overwhelming response received for Plenum attributed to the Covid-19 pandemic where there is higher realisation and demand for homes in matured townships that are safe and secured, surrounded by a variety of amenities and seamless connectivity infrastructures,” said Bandar Setia Alam divisional general manager Tan Siow Chung in a press release today.
“With Plenum fully taken up, we are focusing on our latest serviced apartment offering, Setia City Residences, located adjacent to Setia City Mall, which recently opened its new wing, making it the largest mall in Shah Alam. Also in the pipeline are the last phases of the Bywater Homes collection targeted to be launched by this year,” added Tan.
Melodia1 in Alam Impian, Shah Alam, which consists of two-storey terraced homes measuring 22ft by 75ft with modern contemporary designs, is 99% taken up since its launch in January this year. Following Melodia1's success, Melodia2 is slated to be launched in 2Q21.
Following its launch in March, Carissa at Bayuemas in Klang, which offers 82 double-storey terraced homes (from 24ft by 70ft), has achieved a take-up rate of 90% within the same month.
Meanwhile, S P Setia's premium-range properties also made noteworthy achievements in attracting homebuyers and investors alike.
With a gross development value (GDV) of RM156 million, Glades of Westlake — a unique modern-oriental concept and the second last island phase of Setia Eco Glades in Cyberjaya — was launched end-March with almost 70% of its double-storey 41ft by 85ft semi-detached homes (priced from RM1.8 million) and 59ft by 85ft bungalows (priced from RM3.1 million) booked within three weeks after the launch.
Divisional general manager Goh Tzen Sernz said the good take-up for the premium offerings was a testament to the faith homebuyers have in the Setia brand and its lifestyle offerings. “We are confident that the demand will continue to rise for such products as more homebuyers are opting for a better living environment, not just to live, but also to work.”
Setia Eco Park's Phase 1B of Precinct Arundina in Shah Alam was launched at the end of March, and its two-storey semidees (from 32ft by 75ft) with prices starting at RM1.3 million are 70% taken up within a month. It has also recently completed the central park, which will form the green lung of the development with natural waterways and greenery to foster a healthy communal lifestyle.
S P Setia sells Johor land to Scientex for RM518.1m
(theedgemarkets.com / May 07, 2021 18:31 pm +08)
KUALA LUMPUR (May 7): S P Setia Bhd is selling eight parcels of plantation land in Johor to Scientex Bhd for RM518.1 million.
S P Setia said in a bourse filing its wholly-owned subsidiary Pelangi Sdn Bhd had entered into a conditional sale and purchase agreement with Scientex’s wholly-owned subsidiary Scientex Quatari Sdn Bhd for the disposal.
“The approximately 960 acres of freehold land is located in Mukim of Tebrau, district of Johor Bahru and registered for agricultural use. It is currently home to matured oil palm trees,” it said.
According to S P Setia, the sale consideration is arrived at between the parties on a “willing-buyer willing-seller” basis after taking into consideration the market value of the lands of RM480.8 million.
S P Setia’s president and chief executive officer Datuk Khor Chap Jen said the sale of the lands is part of the group’s business strategy to improve efficiency by monetising some of the land bank to be ploughed back into its other project developments for immediate launches as well as paring down debt or other use deemed fit by the company.
“It is expected to contribute positively to S P Setia’s profits for the next few years,” he said.
According to him, S P Setia currently has 11 ongoing projects in the Southern region, and post-sale of the above, the group will still have an effective total remaining land bank of approximately 7,569 acres.
“Our focus for this financial year is to optimise the current landbank utilisation and by launching properties that are in demand within our matured townships,” he said.
In a separate statement, Scientex said the proposed acquisition represents a strategic investment opportunity to increase and boost its existing land bank.
“The close proximity between Scientex’s existing developments and the proposed development will enable Scientex to generate better operational efficiencies through greater economies of scale to be achieved during project implementation,” it said.
It also said the landbank expansion is in line with the goal of Scientex to build more affordable homes with an objective of completing 50,000 affordable homes throughout the nation by 2028.
“The land is expected to provide a steady and sustainable property development model as Scientex continues to focus on affordably priced landed properties, for which demand continues to remain firm and resilient,” it said.
The group also noted the proposed acquisition will be funded by internally generated funds and bank borrowings.
The proposed acquisition is expected to be completed in the first half of 2024, it added.
S P Setia’s share price gained three sen or 2.91% to close at RM1.06 today, valuing the group at RM4.3 billion. Meanwhile, Scientex went up two sen at RM4.13, valuing the group at RM6.4 billion.
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